May 2019 US durable goods orders:
- Prior was -2.1% (revised to -2.8%)
- Ex transport +0.3% vs +0.1% expected
- Prior ex transport +0.0% (revised to -0.1%)
- Capital goods orders non-defense ex air +0.4% vs +0.1% exp
- Prior capital goods orders non-defense ex air -1.0%
- Capital goods shipments non-defense ex air +0.7% vs +0.1% exp
- Prior cap goods shipments 0.0% (revised to +0.4%)
The headline is deceiving. The core numbers are better than expected and the shipments numbers will push up Q2 GDP. However it was released at the same time as a poor trade balance number that will drag it back down.
The story here is that Boeing civilian aircraft orders fell by 50% in the month, largely due to the 737Max disaster. That's rough for Boeing but it doesn't say anything negative about the economy. Look for Q2 GDP estimates to be revised higher.
